When as a society paying off a mortgage was the exception, and not the rule for families is when many people started to spend when more buying a home. Living as if there is a never ending stream of income is dangerous. We have no guarantees that we will keep our jobs or our current situation. Unexpected things do happen in life. We live in a time where mortgages are so easy to get. Spending thousands that will take an entire lifetime to pay off should not be accepted as normal.
Let me walk you through a few steps to possibly change the way you think about a mortgage. I will share some of my ideas on frugal home mortgage purchases. Number one is to put a lifetime of payments into perspective might kick some frugal home actions into place. Paying off a home mortgage can be a game changer.
Change The Game
Look at a home mortgage for what it is. A constant monthly payment. The home does become your property, after 30 years of disciplined payments. How nice would it be too not have this hanging over each work day morning. Going to work because you can, not because you have too. Overpriced mortgages will take forever to pay off. Change the game by purchasing a home that is able to be paid off in 15 years. That is one half of thirty years. A lot of choices will be opened up when a house payment can go into the saving and not to a bank.
Be Realistic with Price
Agree with your spouse on a payment that is affordable prior to purchasing anything. Starting off with more home than money is a bad idea. Buy a home that is realistic to current income. Not a hopeful future income. Live on what is currently in the budget. Research home prices and see what comes in under the budget radar. Not struggling to make a payment is good rule of frugal homes. There is nothing frugal about overspending. Living in a large home with six bedrooms and five bathrooms is a great dream, but unless right out of college the income is in the six figures that will have to stay a dream. Or make six figures and buy a home that is $50,000 or less. That is how frugal home families think.
Make a Large Down Payment
Buying a home now is much easier than it used to be. We do not face the same struggles that our parents faced. No down payment options sound good. Reality is though, that they do not help to pay down the mortgage. Everything will look great on paper and feel like this was a great idea. But, I am here to say that it is not. The more that is put down on the home in the beginning helps out with lower payment, quicker payoff, and saving the down payment develops discipline.
Discipline is what pays off a mortgage in 15 years. Setting up payments so low that more can be added each month, or at the end of the year builds confidence. Many more expenses will occur and even cause a detour in the payoff process. Staying ahead of the expenses by lowering the payment shaves off a lot of time and stress. Who doesn’t want lower payments?
Paying off a home is possible. Step into the shoes of someone who wants to pay off a home earlier than 15 years. The many frugal home sacrifices that take place to make a family debt abound. The small and the large changes work together and eventually pay off.
Current homeowners can also step into the frugal home lifestyle to get a mortgage paid off early. Look at the budget and see where money can be used. Start to eliminate the unnecessary purchases and random spending.
Pay a larger amount each month on the mortgage. Random spending habits multiply into lots of places. Why not total that amount and send in the check with each mortgage payment. As the balance decreases each month when the statement comes in the mail a momentum will begin. Saving money will start to be contagious.
Realizing for a time that it is ok to use the vacation money or some of it to pay on the mortgage may not sound fun, but it will be worthwhile.
What and when are you willing to sacrifice to change your future? Follow me on instagram @momsarefrugal and watch my frugal home lifestyle to live on one income and still have fun!
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